Firstrade is a discount online brokerage offering free stock and options trading for all kinds of traders. You can browse upcoming IPOs, real-time news, instant options strategies, and weekly income reports.
Business Insider's personal finance team compared Firstrade to the best stock trading apps. We found its fees and trading features standard for the industry.
Pros and Cons
Firstrade Pros
- No fees for stocks, ETFs, options, or mutual funds
- Options have no contract fees
- 3% IRA match for contributions (2% for transfers) until February 21, 2025
- Extended hours trading for eligible stocks between 8 a.m. and 9:25 a.m. and 4:05 a.m. and 8 p.m.
- Dividend reinvestment programs
Firstrade Cons
- Not automated or advisor-assisted accounts
- Customer service is only available during the week
- No cryptocurrencies
Open an Account
See Terms
3% IRA match for contributions and 2% match for transfers (offer ends 3/18/25)
Pros
Cons
Firstrade could be a good brokerage choice for US residents and international investors looking to actively trade multiple investment types for free.
FirstradeCompare Firstrade
Overview
Firstrade is a discount online brokerage that doesn't require a minimum balance or charge annual management fees. Firstrade's platform features and tools include comprehensive trading and money-management services like securities lending, margin trading, and dividend reinvesting.
Its fractional share investing strategy allows you to trade hand-picked stocks and ETFs for as little as $5. You'll also get free education resources (including live webinars), extended trading hours, and more than 11,000 commission-free mutual funds.
Firstrade is best for fee-conscious, active investors interested in diversifying their portfolios with commission-free trades of stocks, ETFs, options, and mutual funds. Beginners and intermediates interested in buying and selling their own securities should consider Firstrade for its library of educational resources and straightforward trading strategies.
However, it's not a good brokerage option for traders searching for professionally managed accounts, automated advice, or alternative investment options like cryptocurrencies.
Ways to Invest
Firstrade offers a range of investment account options, including retirement and education savings accounts.
Firstrade Brokerage Accounts
Firstrade offers individual and joint investing accounts for US-based and international investors. Investment options on Firstrade include commission-free stocks, ETFs, and fractional shares. And, unlike many online brokerages, Firstrade doesn't charge fees for options contracts (most brokerages charge $0.65).
Individual brokerage accounts through Firstrade may be eligible to trade on margin. Loan rates range from 9.75% (for loans of $1,000,000 or more) to 13.75% (for loans under $25,000). You must need at least $2,000 in your account to access margin trading.
For premium trade ideas, Firstrade provides clients with research from top financial service firms like Morningstar, Briefing.com, and Zacks & Benzinga. Or you can access advanced research and analysis with the platform's new AI tool, FirstradeGPT.
Users also get access to the online brokerage's securities lending income program, which offers short-selling strategies and lending opportunities. To sign up, you must have a net worth or annual income of at least $20,000.
Firstrade Retirement Accounts
The brokerage has multiple fee-free retirement accounts, including traditional, Roth, and rollover IRAs. It also offers SEP IRAs and SIMPLE IRAs. When trading stocks, options, and mutual funds, IRAs have no minimum deposit requirements, maintenance fees, or commissions.
Firstrade offers a limited-time 3% match bonus on traditional, Roth, and rollover IRA contributions and a 2% match for transfers (ends February 21). Customers transferring at least $2,500 can also receive a transfer fee rebate of up to $250. This offer ends on March 18, 2025.
Firstrade's Tax Center offers tax planning tools, learning resources, and retirement calculators to help you manage and save on your taxes.
Firstrade Education Savings Accounts (ESAs)
Firstrade offers custodial and education accounts, including a Coverdell Education Savings Account (ESA) and UGMA/UTMAs. There are no contribution limits, custodian income limits, or minimum deposit requirements.
To open a custodial account with Firstrade, fill out an account application form online or through the mail, send an online service agreement form, and provide a copy of a valid government ID.
Fees
Firstrade is free to open and doesn't require a minimum account. Trades in stocks, ETFs, options, and mutual funds are commission-free. There are also no contract fees for options. Treasury bills, notes, secondary market CDs, and bonds may be subject to markups or markdowns.
Trustworthiness
Firstrade has received an A rating from the Better Business Bureau. The BBB rates companies using a grade scale range of A+ to F and states that the current rating is because multiple complaints are filed against the business.
According to BBB's website, its ratings represent its opinion of how well a company interacts with its customers. The bureau also examines customer complaints and whether a company responds to and closes each complaint.
Firstrade hasn't been involved in a major lawsuit or scandal in the past three years.
Alternatives
SoFi Invest
$0 ($5 to start investing); $5 fractional shares; $2,000 for margin trading
$0 annual fee and stock trading fee
Pros
Cons
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
SoFi Active Invest® is a top online investment platform for US investors who want access to self-directed and automated trading strategies.
Passive investors are better off with SoFi® since the brokerage offers a robo-advisor for a pre-built ETF portfolio. You'll also get access to automatic portfolio rebalancing, recurring deposits, goal planning, and long-term wealth-building strategies.
Firstrade is better for international traders as SoFi only offers services to U.S. investors.
Why You Should Trust Us
We examined Firstrade using Business Insider's rating methodology for investing platforms to compare account types, investment options, and overall customer experience. Platforms are given a rating between 1 and 5.
Investing platforms often offer multiple assets, trading tools, fees, and other features. Some platforms are better for more advanced investors or active investors, while others may better suit beginner and passive investors. Firstrade was evaluated, focusing on how it performed in each category.
Business Insider's Overall Firstrade Rating
| Feature | Rating (out of 5) |
| Fees 25% | 4.00 |
| Investment selection 20% | 4.00 |
| Access 20% | 5.00 |
| Customer support 15% | 4.00 |
| Ethics 20% | 4.50 |
| Overall score | 4.30 |
FAQs
How does Firstrade stand out from other online brokers?
Firstrade stands out from other online brokers as one of the few trading platforms offering contract-free options and commission-free mutual funds. This unique discount brokerage appeals to beginners and experienced traders who prioritize cost-efficient trading and simplicity.
Is Firstrade suitable for beginner investors?
Firstrade is suitable for beginner investors looking for a cost-effective way to trade stocks, ETFs, options, and mutual funds. The platform also offers a huge selection of commission-free fractional shares for simple portfolio diversification.
What investment research and tools does Firstrade offer?
Firstrade provides robust trading tools and free investment research from Morningstar, Zacks, Benzinga, and Briefing.com. Firstrade's four platforms — the web platform, mobile app, Options Wizard, and Firstrade Navigator — offer access to account information, investment performance, and market data.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
